Churchill Asset Management's Alona Gornick - the evolution of private credit, the power of permanent capital, and the importance of the product specialist

Alt Goes Mainstream: The Latest on Alternative Investments, WealthTech, & Private Markets

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode is with someone who has experienced the growth and evolution of the credit space from different vantage points.

We welcome Alona Gornick, a Managing Director, Senior Investment Strategist, and Co-Head of the Chicago Office for Churchill Asset Management, a firm with $50B committed capital that is a provider of financing solutions to middle market private equity firms and their portfolio companies. Churchill is an investment-specialist affiliate of Nuveen, the asset manager of TIAA.

Alona provides investment insights across the private capital spectrum to the investment community – and has a particular focus on working with the Private Wealth and Retail channels. She works closely with Nuveen’s global distribution team to deepen relationships with and educate Churchill’s investors and partners.

Alona leverages her experience in capital markets, investor relations, and credit investing from working at the likes of Nuveen, Golden Gate Capital, and Oaktree Capital Management.

Alona and I had a fascinating conversation. We discussed:

• The evolution of credit investing.
• The opportunities and risks in private credit.
• Are we in a private credit bubble?
• Why the product specialist role is critical for working with the wealth channel.
• The power of scale, particularly in private credit, and how it helps alternative asset managers win deals and invest.
• The strategic benefit of platforms and permanent capital.

Thanks Alona for coming on the show to share your views and wisdom on private markets. We hope you enjoy.

A word from AGM podcast sponsor, Ultimus Fund Solutions

This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.

To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.

Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at [e-mail].

We thank Ultimus for their support of alts going mainstream.

Show Notes

00:00 Introduction to Ultimus Fund Solutions

01:18 Welcome to the Podcast

02:00 Guest Introduction: Alona Gornick

03:45 Alona's Career Path and Experience

06:59 Growth of Middle Market Direct Lending

07:41 Changes in the Credit Landscape

10:21 The Importance of Size and Scale in Private Credit

13:27 Deal Structuring and Market Evolution

14:46 Impact of High Rate Environment

16:06 Private Credit Returns and Underwriting

20:53 Investor Questions and Market Insights

21:24 Educating Investors on Private Credit

23:43 Private Credit in Wealth Portfolios

24:09 Diversification Benefits of Private Credit

24:24 Yield Premium in Private Credit

26:40 Private Credit vs. Private Equity

27:06 Exploring Private Equity and Private Debt

27:24 Transitioning from Public to Private Credit

27:49 The Role of a Product Specialist

28:09 Balancing Risks and Benefits

28:49 Relating to Advisors with Real Examples

29:40 The Importance of Education in Allocation

30:25 Diverse Viewpoints on Alternative Asset Managers

31:48 Challenges in Access to Capital

33:26 The Significance of Hiring Quality People

34:12 Non-Traditional Backgrounds in Specialist Roles

36:29 Patience and Commitment in Educating Investors

39:13 The Hardest Part of Educating the Wealth Channel

40:47 The Role of Structure in Education

44:21 Concerns About the Future of Private Credit

47:00 The Growth Potential of Private Credit

49:38 The Most Interesting Alternative Investment

50:15 The Opportunity in Private Equity Secondaries

52:47 Private Credit Secondaries: A Nascent Space

54:17 Primary and Secondary Considerations in Credit

54:34 Conclusion and Final Thoughts